NERC Seeks Decentralization Of Electricity Regulation

The Nigerian Electricity Regulatory Commission (NERC) has taken a step towards decentralizing power regulation, following the implementation of the new Electricity Act 2023.

The Act, signed by President Bola Tinubu in June 2023, shifts the control of electricity generation and regulation to individual states, breaking away from the exclusive federal jurisdiction.

During a stakeholders meeting in Abuja on Monday, NERC Chairman Sanusi Garba inaugurated three crucial working groups: Legal and Regulatory, Engineering and Technical, and Commercial and Transaction.

Garba emphasized that the focus of the Act is to empower states in formulating and regulating electricity laws within their territories.

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Quoting Garba’s statements on its official X handle, NERC highlighted the collaborative effort between the commission and states. “It takes a process for states to start regulating electricity in their areas, and NERC is collaborating with them on this,” Garba stated.

The three working groups will look into key areas outlined in the Electricity Act, facilitating discussions over the next three months.

NERC Commissioner Yusuf Ali noted the Act’s shift towards a two-tier regulatory regime, dividing responsibilities between federal and states.

Among the Act’s notable benefits is the allowance for investors to construct, own, or operate electricity generation or distribution facilities without a license, within certain capacity limits. States can issue licenses to private investors for mini-grids and power plants, fostering localized electricity markets.

While celebrating the Act’s potential, NERC Vice Chairman Musiliu Oseni urged working group members to deliver a robust report, emphasizing the collective goal of a well-functioning electricity sector.

The outcomes of these deliberations are eagerly anticipated, marking a transformative shift in Nigeria’s power landscape.